New US inflation data released yesterday showed that inflation remains relatively strong, with the annualized rate rising month-on-month from 3.1% to 3.2%.
Yesterday’s release of US CPI data showed the annualized rate rising from 3.1% to 3.4%, with Core CPI showing month-on-month growth of 0.4%, compared to the 0.3% expected. Despite the slightly bad news, US stock markets still look bullish, with the benchmark S&P 500 Index closing yesterday at a new all-time high price. The US Dollar barely moved despite the data.
Bitcoin advanced again yesterday to make a new all-time high just above $73,000. The short-term price action looks bullish. Trend traders will be interested here on the long side.
The price of Gold is showing initial signs of having topped out on Friday at a record high of $2195. However, these are only initial signs, and bulls are not likely to start getting out of longer-term positions yet until a deeper bearish pullback might be made.
In the Forex market, the New Zealand Dollar has been the strongest major currency since the Tokyo open today. The Swiss Franc has been the weakest.
In the commodities market, Cocoa futures rose strongly yesterday to reach new multi-year highs. Trend traders will be keen to be involved in this very long-running trend on the long side.
There will be a release of UK GDP data later today, which is expected to show a month-on-month increase of 0.2%.
Analysts in Japan are expecting sizable corporate wage rises will be agreed this week, which will likely trigger an abandonment by the Bank of Japan of its current ultra-loose monetary policy as soon as next week.
Tech stocks continued to rise, with Infineon Technologies and SAP seeing gains of 3.41% and 2.01%, respectively.
Eurozone Industrial Production and the ECB in Focus
On Wednesday, industrial production numbers for the Eurozone will garner investor interest. Economists forecast industrial production to decline by 2.6% in January after rising 2.6% in December.
Downward trends in consumer prices could see investors show more interest in the service and manufacturing sector data. A weakening macroeconomic environment could support bets on a more dovish ECB rate path for 2024.
Beyond the inflation figures, investors must monitor ECB chatter. ECB Executive Board members Kerstin af Jochnick and Piero Cipollone are on the calendar to speak. Support for an ECB interest rate cut in June would support the buyer appetite for DAX-listed stocks.
However, there are no US economic indicators from the US to consider. The lack of data will leave the US equity markets to influence market risk sentiment late in the European session.
Short-term Forecast
Near-term trends for the DAX will likely hinge on ECB and Fed interest rate cut bets. Softer inflationary pressures could signal multiple rate cuts in H2 2024. However, signals of a marked deterioration in the macroeconomic environment could pressure the DAX.
On Wednesday, the DAX futures and Nasdaq mini were down 20 and 24 points, respectively.
DAX Technical Indicators
Daily Chart
The DAX sat well above the 50-day and 200-day EMAs, sending bullish price signals.
A DAX break above the Tuesday all-time high of 17,973 would support a move to the 18,000 handle.
On Wednesday, Eurozone industrial production and ECB commentary need consideration.
However, a drop below the 17,850 handle would bring sub-17,800 levels into play.
The 14-day RSI at 77.14 shows the DAX in overbought territory. Selling pressure could intensify at the Tuesday high of 17,973.
Jamie Dimon, CEO of JPMorgan Chase, has made a controversial comparison between Bitcoin and cigarette smoking.
The influential banker has stated that he supports the right to buy Bitcoin, but he personally would never invest in it.
During his speech at the Australian Financial Review business summit, Dimon expressed skepticism about the cryptocurrency’s utility, associating it with illicit activities like sex trafficking, fraud, and terrorism.
Dimon’s persistent critique of Bitcoin
Long known for his critical stance on Bitcoin, Jamie Dimon has once again advised potential investors to steer clear of the cryptocurrency.
In a recent CNBC interview, Dimon differentiated between blockchain technology and Bitcoin, praising the former for its efficiency and potential for real-world application through tokenization. At the same time, he dismissed Bitcoin as a valueless asset and likened it to a “pet rock.”
He underscored his belief that Bitcoin’s primary utility lies in facilitating illegal transactions, further fueling his argument against the cryptocurrency’s investment merit.
Industry backlash
Dimon’s January comments and his call for a potential Bitcoin ban were met with backlash from prominent figures in the cryptocurrency industry. Leaders like Grayscale CEO Michael Sonnenshein, Galaxy Digital’s Mike Novogratz, and Ripple’s CEO Brad Garlinghouse have countered Dimon’s views.
Despite the criticism, Dimon maintains that the risks associated with cryptocurrencies justify his cautious stance.
Major currencies are mostly little changed as broader markets are taking a bit of a breather so far today. The US CPI data yesterday produced a chaotic reaction as the dollar went up and down, before moving back up slightly again in the aftermath. That comes as bond yields also firmed but equities had other ideas as tech stocks rallied hard.
That is making it tough to get a good grasp on things but the Fed pricing now shows that odds of a June rate cut are at ~76% with 84 bps worth of rate cuts priced in for the year. It will now come down to whether the Fed sees fit to guide markets towards a move in June or preferring to keep their options open.
But so far today, equities are more muted while bonds are also not doing much. US futures are flat while 10-year Treasury yields are down just 0.6 bps to 4.148%. That’s not giving traders much to work with ahead of European morning trade later.
The yen is an early mover with USD/JPY easing to 147.23 before bouncing back to 147.60 now. Japan’s spring wage negotiations will conclude this week and we’re already getting some early headlines here. That will keep the yen in the spotlight until the weekend, with the BOJ coming up next week.
As for European trading, there will be some light data releases to move things along. But the main focus will stay on broader market sentiment as traders digest the post-CPI reaction before another slew of US data tomorrow.
0700 GMT – UK January monthly GDP data 1000 GMT – Eurozone January industrial production 1100 GMT – US MBA mortgage applications w.e. 8 March
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
Investing.com– Most Asian currencies crept lower on Wednesday, while the dollar retained some overnight gains after hotter-than-expected U.S. inflation data kept fears of higher-for-longer interest rates in play.
The was an outlier, however, as it benefited from growing conviction that the Bank of Japan was set to raise interest rates soon. But gains in the yen were still held back by concerns over U.S. rates.
Dollar steady as CPI beats expectations, more econ. cues on tap
The and fell slightly in Asian trade, but retained a bulk of their overnight gains after a stronger-than-expected reading on inflation.
The reading showed that inflation remained stickier than expected, feeding into concerns that the Federal Reserve will have little impetus to begin trimming interest rates.
Still, markets maintained their bets that the Fed will have enough cause to begin cutting rates by June, with a 25 basis point reduction still on the cards, according to the .
But the hotter CPI reading potentially sets the stage for a stronger reading on inflation due later this week. U.S. data for February is also due on Thursday.
Japanese yen firms amid BOJ rate hike watch
The rose 0.3% on Wednesday, as signs of incoming wage hikes in Japan drummed up expectations for an imminent interest rate hike from the BOJ.
Media reports showed Toyota Motor (NYSE:) Corp (TYO:), one of Japan’s biggest employers, had agreed to steep wage hikes with a labor union. Other employers also appeared to have followed suit.
Increased wages, coupled with recent, sticky inflation indicators, give the BOJ more impetus to end its negative interest rates and yield curve control policy.
Reuters reported that the BOJ was gearing up to signal how it will conduct bond purchases after ending its ultra-dovish policies.
The BOJ is set to , and is pipped to either raise interest rates then or during a late-April meeting. Higher rates bode well for the yen, which was battered by rising U.S. rates over the past two years.
Broader Asian currencies moved in a flat-to-low range. The added 0.1%, while the and both tread water.
The fell 0.1% even as the People’s Bank of China set a stronger-than-expected midpoint. Focus was also on key data from the country, due later in the day.
The steadied after clocking some losses in overnight trade.
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The SEC must file its remedy-related brief by March 22 and Ripple by April 22. The remedy-related briefs could give insights into the likely outcome of the SEC v Ripple case.
While the outcome needs consideration, SEC plans to appeal against the Programmatic Sales of XRP remains the focal point. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.
A settlement would end SEC plans to appeal the ruling. However, hopes for a settlement have diminished as the SEC v Ripple case nears a conclusion. Fading hopes of a settlement have shifted focus to the SEC v Coinbase (COIN) case. A Coinbase victory may significantly alter SEC plans to appeal against the Programmatic Sales ruling.
Immediate investor attention is on the Coinbase Motion to Dismiss (MTD). In August 2023, Coinbase filed an MTD, arguing the SEC lacks the statutory authority to regulate crypto exchanges. If Judge Katherine Failla grants the MTD, legal precedence could end the SEC reign of regulation through enforcement. More importantly, an SEC loss may force the SEC to settle the Ripple case.
Coinbase Petition for Ruling Making and Conflicting SEC Statements
On Tuesday, Ripple Chief Legal Officer Stuart Alderoty shared a post from Coinbase Chief Legal Officer Paul Grewal. Paul Grewal posted highlights from the Coinbase filing to contest the SEC decision to deny the rulemaking petition, saying,
“Don’t want to read our entire 78-page brief in our Third Circuit suit against the SEC? Just read this to understand how broken the Commission’s approach has been.”
Seychelles, Mar 13, 2024 – (JCN Newswire) – In a significant stride towards enhancing DeFi accessibility and functionality, Life DeFi is thrilled to announce a partnership with Alvara Protocol. This collaboration marks the integration of the innovative ERC 7621 standard into Life DeFi’s mobile and Chrome extension wallets, setting a new standard in the DeFi ecosystem.
Alvara Protocol introduces a novel approach to managing and investing in digital assets. By allowing users to create, manage, and trade baskets of tokens, it simplifies the investment process, offering a diversified approach directly within Life DeFi’s platforms.
Streamlining DeFi Investments
Through this partnership, Life DeFi users will gain the ability to access and interact with ERC 7621 token baskets, empowering them to diversify their portfolios with ease and efficiency. This feature is designed to lower the entry barriers for novice users while providing sophisticated tools for seasoned investors.
Empowering Users with Advanced Features
Alvara empowers you to create and mint ERC 7621 Basket Tokens (BTS) effortlessly.
Custom Token Baskets: Users can create personalized baskets of tokens based on their investment preferences and risk appetite.
Seamless Trading: Directly trade entire baskets of tokens in a single transaction, enhancing liquidity and reducing transaction costs.
Portfolio Diversification: Easily diversify investments to manage risk without the need to manage each asset individually.
User-Friendly Interface: Create, manage and even sell your BTS tokens all on one seamless platform. The integration of the ERC 7621 into Life DeFi’s mobile and Chrome extension wallets will allow users to store BTS tokens in their Life DeFi wallets. Life DeFi’s platforms offer an intuitive and easy-to-navigate interface, making it simpler for users to leverage the benefits of the ERC 7621 standard.
A Commitment to Innovation and Accessibility
Both Life DeFi and Alvara Protocol are committed to driving innovation and accessibility in the DeFi space. This partnership reflects our shared vision of making DeFi more approachable and efficient for everyone.
About Life DeFi
Life DeFi is a leading decentralized finance platform offering a suite of services designed to make DeFi accessible and user-friendly. With a focus on innovation and security, Life DeFi provides a comprehensive ecosystem for managing digital assets, including a mobile app and Chrome extension wallet.
About Alvara Protocol
Alvara Protocol is at the forefront of DeFi innovation, developing cutting-edge technologies to enhance the digital asset ecosystem. The new ERC 7621 token standard, developed by Alvara, represents a significant advancement in token creation and management and investment strategies. For more information about Life DeFi and the integration of the ERC 7621, please visit [Life DeFi’s website] and alvaraprotocol.io.For media inquiries, please contact:Zephyr@platodata.io
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Cardano has been constructing a solid base that could support its ascent toward the $1 mark, indicating a bullish trend on the horizon. The price analysis of ADA shows a resilient structure as it bounces between significant support and resistance levels, laying the groundwork for a potential surge.
At the moment, ADA trades near $0.79, showing resilience and a potential for upside movement. The local support level can be identified around the $0.58 mark, where the 50-day moving average has provided a reliable safety net during retracements. This level has consistently encouraged buying pressure, propelling the price upwards.
On the resistance side, the $0.87 level is critical. It has previously acted as a barrier to further price ascents. A breakout above this resistance could signal a significant bullish momentum, possibly propelling ADA to the $1 target. However, this would require a considerable volume increase to sustain such a move, as resistance levels often gather sell orders that could halt upward movements.
Cardano’s DeFi ecosystem is showing impressive growth, attracting attention to ADA. This increasing interest in Cardano’s DeFi capabilities could be a primary catalyst for the rally, as more investors and users join the network, attracted by its potential in the decentralized finance space.
NEAR breaches another resistance
The Near Protocol (NEAR) has seen its value soar, breaking past the $7 mark in a remarkable price surge. This uptick is not just a solitary peak but rather a part of a sustained rally that reflects the active development work behind the scenes at Near and the prevailing market sentiment that is favoring time-tested cryptocurrencies.
Analyzing the price chart of NEAR, it’s evident that the token has been on a steady ascent. After pushing past the $4.50 resistance level, NEAR experienced a swift rise, indicating strong buying interest and investor confidence.
The $4.50 level, which previously acted as resistance, could now serve as a local support, bolstering the price during any potential retracements.
The significant volume spike accompanying the rise confirms the enthusiasm in the market for NEAR. As the protocol continues to build and deploy effective solutions in the decentralized finance and application space, its ecosystem growth has been a considerable driver of the rally.
The current price action for NEAR indicates a bullish trend, with the token’s value cutting through previous highs with relative ease. This upward trajectory is supported by solid fundamentals, including the platform’s performance and scalability capabilities..
Ethereum stays dominant
Ethereum continues to captivate the cryptocurrency market with an impressive rally that shows no signs of abating. As the leading altcoin, it not only sets the pace for the altcoin industry but also serves as the main engine driving the current market rally.
Examining the price chart of ETH, we observe a remarkable upward trend. Ethereum has surged past multiple resistance levels and now trades around the $4,050 mark. As we dissect the chart, a key resistance level to watch is the recent high of approximately $4,200. If ETH can break through this point, there may be little resistance until the next psychological level of $4,500.
On the support side, Ethereum finds strong backing at the $3,390 level, where the 50-day moving average lies. This moving average has historically acted as a dynamic support in uptrends, enabling Ethereum to gather momentum for subsequent rallies. Should there be a price correction, this level could be the first test of Ethereum’s resilience.
There is a potential for a price reversal, as with any parabolic move, particularly if the market becomes overextended. However, Ethereum has not yet encountered major scalability issues that could dampen the rally, largely thanks to Layer 2 solutions (L2s) that have absorbed much of the demand that would typically strain the main network.
